Marketing Research Audhesh Paswan Chapter 1: The Nature and Role of Marketing Research

The Nature of Marketing Research Marketing research is one of the principal tools for answering questions because it: Links the consumer, customer, and public to the market through information used to identify and define marketing Generates, refines, and evaluates marketing actions Monitors marketing performance Underlines the understanding of marketing as a process

Marketing Managers.. Respond to a problem, by searching for, and selecting a solution or course of action, to create value for firm’s stakeholders.

Decision/Research Context Customer Groups: Consumers, Employees, Shareholders, Suppliers Controllable Marketing Variables Uncontrollable Environmental Factors Marketing Research Assessing Information Needs Providing Intelligence - Information, data Marketing Decision Making Marketing Managers - Decisions regards market Segmentation, Target Market Selection, Marketing Programs/Plans, Performance & Control

Decision Making Process Problem Recognition Information Search Problem Analysis Alternative Evaluation Decision Information/data

Market Information/data Sources Decision Making Process Intuition Experience Authority Research

Information or Data Secondary Vs Primary Qualitative Vs Quantitative Internal Vs External Qualitative Quantitativ e Secondary Anecdotes Experience Case studies Opinions, etc. Primary Focus groups Interviews projection techniques, etc. Census Syndicated data Journals Magazines, etc. Surveys Observations Experiments Tests, etc.

Marketing Research Defined Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions. This process includes: specifying what information is required; designing the method for collecting information; managing and implementing the collection of data; analyzing the results; and communicating the findings and their implications.

INFORMATION REDUCES UNCERTAINTY

Marketing Research Types Basic Research Applied Research

BASIC RESEARCH ATTEMPTS TO EXPAND THE LIMITS OF KNOWLEDGE. NOT DIRECTLY INVOLVED IN THE SOLUTION TO A PRAGMATIC PROBLEM

APPLIED RESEARCH CONDUCTED WHEN A DECISION MUST BE MADE ABOUT A SPECIFIC REAL-LIFE PROBLEM

SCIENTIFIC METHOD The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

MARKETING CONCEPT CENTRAL IDEA IN MARKETING EVOLVED OVER TIME NOT PRODUCTION-ORIENTED MARKETING-ORIENTED

Marketing Concept Consumer Oriented Long Run Profitability Cross Functional, Integrated and Coordinated Effort Marketing Research is a means for implementing Marketing Concepts

STAGES IN DEVELOPING AND IMPLEMENTING A MARKETING STRATEGY Identifying and evaluating opportunities Analyzing market segments and selecting target markets Planning and implementing a marketing mix Analyzing market performance

Marketing Strategy Stage 1. Identifying and Evaluating Opportunities 2. Analyze market Segments and Select Target Markets 3. Plan and Implement a Marketing Mix 4. Analyze Marketing Performance Example of Market Research Mattel Toys investigates desires for play experiences MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly Cadillac investigates buyers’ demographic characteristics Price: Safeway does a competitive pricing analysis Distribution: Caterpillar Tractor Co. investigates dealer service program. Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy Promotion: How may consumers recall “Always Coca Cola!” This year’s market share is compared to last year’s.

PERFORMANCE-MONITORING RESEARCH RESEARCH THAT REGULARLY PROVIDES FEEDBACK FOR EVALUATION AND CONTROL INDICATES THINGS ARE OR ARE NOT GOING AS PLANNED RESEARCH MAY BE REQUIRED TO EXPLAIN WHY SOMETHING “WENT WRONG”

Determining When to Conduct Marketing Research Is sufficient time available before a managerial decision must be made? Is the information already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Conducting Marketing Research Do Not Conduct Marketing Research Time ConstraintsAvailability of DataNature of the DecisionBenefits vs. Costs Yes No

Determining When to Conduct Marketing Research TIME CONSTRAINTS AVAILABILITY OF DATA NATURE OF THE DECISION BENEFITS VERSUS COSTS

Potential value of a marketing research effort should exceed its estimated costs Value Decreased Certainty Increased Likelihood of a Correct Decision Improved Marketing Performance and Resulting Higher Profits Costs Research Expenditures Delay of Marketing Decision and Possible Disclosure of Information to Rivals Possible Erroneous Research Results

GLOBAL RESEARCH Marketing Research is increasingly global Market knowledge is essential A.C. Nielsen - more that 60% international business